San Francisco Laundry Ass'n v. American Trust Co.

February 6, 1941, appellant filed its verified petiton for corporate reorganization under Chapter X of the Bankruptcy Act, 11 U.S.C.'A. § 501 et seq. This appeal is taken from the decree disapproving the plan proposed and dismissing the petition.

The debtor (appellant) is a corporation organized for the purpose of conducting a laundry business in San Francisco. By itself, and later through a trustee, it carried on that business until 1938, at which time the laundry equipment and other personal assets were sold and the proceeds applied to the payment of the debtor’s unsecured creditors. The laundry building was then wrecked and the premises converted into a parking lot, which the debtor has since operated.

The former laundry premises, constituting the debtor’s main asset, comprises about half the block bounded by Fillmore, Turk, Steiner, and Eddy Streets in San Francisco. This tract is subject to a deed of trust securing an indebtedness to appellee in excess of $39,000, the debt including approximately $4,000 cash advances and $9,000 unpaid interest. Debtor owns also a smaller parcel of real estate subject to an indebtedness to Florence Brownfield in the amount of $3,500. These…